Monday, June 11, 2018

The digital transformation is a long journey, and the path for digital transformation can be iterative, evolutionary, revolutionary, or disruptive.

Digitalization is series of radical changes, these changes are more extensive than what happened in the past. You have to transform the company’s underlying functions, processes, cultures, and the organization as a whole with adjusted digital speed. Today's organizations are increasingly exhibiting digital characteristics in various shades, extensiveness, and intensity. Therefore, it is important to understand that digital business development is multifaceted and take the high-quality effort to enable organizations thriving.

Build desired business competency: Organizations are at the different stage of its business life cycle, thus, they need to tailor their own need to develop the differentiated business competency for achieving their strategic goals either from gaining the market share or delighting customers perspectives. The core business competency is a harmonization of multiple organizational capabilities which underpin business strategy management. The digital capability is modular, nonlinear and dynamic, has many hard and soft, visible and invisible business elements, with the ability to build, integrate, and reconfigure internal and external competencies to address rapidly changing business environment, and achieve innovative forms of competitive advantage given path dependencies and market positions. The right set of scalable, integral, coherent and differentiated business capabilities directly contribute to the organizational maturity and make the significant impact on business success in the long run. The digital organization can do the great work to preserve core competency even as management expands and redefines the business to reach the next level of the business growth cycle.

Empower people and develop learning agility: Leading organizations empower their people with the choice to do things in an alternative way and equip them with the efficient tools to do their work. Empowerment implies, if not requires, responsibility and accountability. The organizations with the culture of empowerment will reap the benefits of digital workforces who have self-actualized and practice creativity to achieve more. The emergent digital technologies such as social platform provide a flexible way to learn, share and collaborate, to develop learning agility at the organizational level. To gain empowerment, team or individuals need o earn the level of trust, trust is the key component of empowerment, Trust is like the two-way street, earned by creating risk and offering reliance. Digital leaders make it clear that with empowerment comes responsibility, innovation, and sometimes fun and more productivity. They articulate “why” behind each meaningful business initiatives without micromanagement, the staff has opportunities to explore “how” in their own way, makes connections between pieces of knowledge, retrieve and apply knowledge effectively and powerfully, in order to develop learning agility and problem-solving capability.

Manage performance and maximize potential: Performance Management is critical for all organizations, irrespective of headcount and structure. Organizations need to keep one eye on today’s performance and the other eye on the future performance of the business. The management needs to make an objective assessment: What rewards should be linked to performance evaluation and how these rewards will affect the productivity of your employees and contribute to the organizational goals - both at the strategic level and operational level. Most organizations fail to manage performance effectively because they spend too much time on evaluating past performance, without putting enough effort on how to accelerate future performance or maximize business potential. They focus on improving the processes or implementation of performance management or evaluation but fail to look into the system holistically. The key issue is how to add value to employees, organizational goals, and the business result, as well as how to unlock the business potential. Business potential includes the ability to perform in the future and that’s what really matters for building the business’s long-term competency.

The digital transformation won’t happen overnight, digital transformation is a long journey, and the path for digital transformation can be iterative, evolutionary, revolutionary, or disruptive. The real digital transformation taking place today isn’t the replacement of the one by the other, organizational high-quality digital management and business optimization take planning, experimenting, and scaling up. High-quality enterprise is comprised of high-quality people, high-quality products/services, and high-quality business capabilities and high competency to enable business thriving.